Smart specialisation and rural development in the Western Balkans

This technical report offers a preliminary exploration of how the design and implementation of Smart Specialisation Strategies (S3) might contribute to rural development in the Western Balkans. Although in the Western Balkans rural areas account for nearly 50% of the region's population they face critical challenges, such as economic stagnation, depopulation, and infrastructure deficits. As a key pillar for EU accession, S3 represents a place-based policy framework for boosting innovation ecosystems and European Research Area (ERA) integration. Here, S3 is also examined as a strategic framework to potentially mitigate the main challenges in rural areas by discovering untapped potential and promoting policy integration. As a result, this report assesses the degree to which S3 frameworks are tailored to rural needs and sheds a light on potential impact on regional development, specifically within the agriculture, tourism, and energy sectors. Based on a mixed-method approach of stakeholder interviews and document analysis, this research investigates the integration of rural areas within Western Balkan S3 strategies at both the national and macro-regional levels. The study evaluates the gaps and opportunities in policy design and implementation, specifically addressing the depth of rural integration and the identification of sectors capable of driving innovation and competitiveness. Furthermore, it examines how S3 facilitates territorial cohesion between urban and rural dimensions and fosters cross-border collaboration across the Western Balkan economies. Findings aim to provide actionable policy recommendations to enhance the effectiveness of S3 strategies in fostering development and innovation for rural development, through a place-based approach on the Western Balkans economies. By identifying opportunities, sectoral synergies, and areas requiring further attention, this report contributes to the broader goal of integrating rural development more effectively into national and regional innovation policies in the region, particularly with reference to the Green Agenda for the Western Balkans and the Innovation Agenda.